Crypto trading bots are automated software that helps you to buy and sell cryptocurrencies and make more profit. The main advantages of trading bots are reducing risks and increasing revenue. Regardless of your trading experience, you want to know if crypto trading bots work and what is the best option for you to begin with.
The Crypto market never sleeps and you can trade 24/7. It can bring to investors a lot of stress. Here is our guide to the best Bitcoin and Altcoin Crypto Trading Bots Platform on the market right now.
What is a Trading Bot
A crypto trading bot is a software that allows users to automate buying and selling strategies. It utilizes automated and algorithmic trading rules to execute trades at an ideal moment in order to generate profit for the user.
After your setup, the bot will then take care of placing and executing your orders so you don’t need to monitor the cryptocurrency market all day. You can customize your trading bots based on the application that you use.
There are both free and paid versions of cryptocurrency robots, each coming with some benefits and disadvantages. Most cryptocurrency bots come with a free trial version and monthly or yearly paid subscription.
Best Bitcoin Trading Bots
As the cryptocurrency market is in boom it is easier for newcomers to start trading. There are available many tools and trading bots that are super easy to set up and monitor. Let’s have a look at the most favorite trading bots.
- Trade Santa
- 3Commas
- HaasBot
- CryptoHopper
- Coinrule
- Shrimpy
Trade Santa
TradeSanta is a cloud cryptocurrency trading software that lets you take advantage of crypto market fluctuations. You can easily set up a bot for long, short, or your custom automated strategy. It has the best user-friendly platform that is ideal for beginners. Trade Santa platform is secure and has a transparent pricing policy. There are no trading fees, you pay monthly or yearly based on your plan. Start your 3 days free trial. or read our full TradeSanta review.
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3Commas
3Commas is an advanced crypto trading bot with lots of trading options build in. It is one of the best professional tools for automating trading on cryptocurrency exchanges on the market. It can backtest the strategy and it gives you also an insight into the strategies of the most successful traders on the platform. You can copy that strategy or build on it your own.
It runs on the cloud and the platform is very stable and reliable.
The plans start from $22 a month.
Cryptohooper
Cryptohooper is an innovative platform for crypto automated trading for advanced investors. The platform is easy to use after the first minutes of orientation. It is also cloud-based and runs 24/7 so you can let your bot trade all day long. Cryptohooper allows sharing your strategy so you can find trading signals, incorporate them into your own strategy or build your own strategy on them.
CryptoHopper provider offers different pricing packages with prices ranging from $19 per month to $99 per month.
Haasbot Online
Haasbot is an advanced powerful crypto trading bot that allows investors to use one of the pre-made bots or to create their own trading bot using Haas Script. The platform is not user-friendly for non-technical individuals. Unlike most crypto trading bots, Haasbot is not a cloud platform, you need to download and install the platform before you start trading.
Haasbot is a great option for advanced investors who want to create their own trading bot or to learn how to create one.
How to Choose a Trading Bot
Before choosing a trading bot, you should consider few main topics.
- Reliability
- Security
- Easy to Use
- Profitability
- Transparency
- Price
Why You Should Use Trading Bot
There are few reasons why you want to use a trading bot while investing in the cryptocurrency market.
- Efficiency and Speed
- Automated functions
- Never sleeps, trading 24/7
Human emotions can affect trading negatively. An automated bot is unemotional and keeps the strategy on-going. The bot will follow rules no matter what market conditions are present.
Automated bots can find opportunities and take advantage of them. You don’t have to be in front of your computer all the time executing trades. Delegate your trades to a crypto bot that can help you with better trading results.
Crypto Trading Strategy
You can set up your cryptocurrency bot with a different trading strategy. Here are the most used and popular strategies.
- Arbitrage
- DCA
- Grid Strategy
- Smart Orders
Arbitrage Strategy
The arbitrage strategy makes a profit on the spread by buying and selling on exchanges simultaneously. This strategy has quite a low risk. It requires certain market conditions. It simply means buying and selling the same coin on different exchanges and taking profit because of the different prices.
DCA Strategy
Dollar-cost averaging (DCA) is an investment strategy where purchases occur regardless of the asset’s price and at regular intervals. DCA strategy is one of the favorite ones among long-term investors and it found its place in crypto trading as well.
Grid Strategy
The grid trading strategy is a technique where a certain number of sell or buy orders are placed at regular intervals above or below a set price to target gains instead of stopping loss. The grid strategy involves low risk.
Are Crypto Trading Bots legal?
Is using trading bots illegal? Crypto Trading Bots are legal in the cryptocurrency market. If your country allows cryptocurrency trading, you can use a trading bot legally. The cryptocurrency market is less regulated than a stock market and it is also legal to use a trading bot on the stock market.
Cryptocurrency bots connect to exchanges via API that must be provided by the cryptocurrency exchange itself. It is 100% legal to use a crypto trading bot on Binance exchange and many other popular crypto exchanges.
Do Trading Bots Actually Work?
The most important question before you start using a crypto trading bot is if do trading bots work.
Trading bots can work and bring investors profits but they can also make losses. It depends on market conditions and dynamics. Some trading bots are good during trending conditions, some are good for high volatility, some work based on certain movements. Some trading bots even use AI (artificial intelligence) and they adjust to different conditions. Even if they use sophisticated strategies they may not work in certain market conditions.
Before you start using a crypto trading bot you should definitely understand the cryptocurrency market and based on your understanding set up a bot.
What cryptocurrencies are best for trading
Even though most people search for a bitcoin crypto trading bot, based on my experience it is better to trade altcoins. It depends on the strategies that you use, but usually, you need a volatile market. Altcoins have more volatility than Bitcoin.
The most trading cryptocurrencies among bots are Cardano (ADA), Stellar (XLM), Algorand (ALGO), Binance Coin (BNB) and VeChain (VET).
How Much a Trading Bot Costs?
There are some trading bots providers that offer their crypto trading bot for free. Be careful because everything that is promoted as free is not usually free. Read reviews online before you start connecting the bot to your crypto exchange account. Beware of scams.
The usual price for a crypto trading bot is ranging between 10 to 50 USD per month.
How much money can a trading bot make?
This is a very tricky question. It cannot be answered with a specific number. The amount of money that you earn while using a trading bot depends on many factors such as how much money you invest, what cryptocurrency pair you choose for trading if your bot’s strategy will be successful and what moment of the crypto market you will be in.
Generally, you can count that crypto trading bots can earn from 1% to 50% profit per month. There are some months that trading bots generate hundreds of percent per month but on the other side, you will experience months with losses as well.
How should you file taxes for crypto bot trading?
One of the disadvantages of trading bots is that you will have an enormous amount of trades on your crypto exchange. Fortunately, the major crypto exchanges allow you to export trading history. You should in advance double-check if your crypto exchange can export your trading history for a month or year. In case you use Binance, you are just fine.
You may want to use cryptocurrency tax software to calculate your taxes. Simply import your transaction history into the software and it will do the rest of the job.
What is the Best Free Crypto Trading Bot?
The best free crypto trading bot is probably Cryptohooper. The platform offers a free plan called Pioneer, but we must admit, that it is not a fully automated solution. They actually make you upgrade most of the time.
Another popular free solution for crypto trading is Pionex. It is a free bot, but they charge a transaction fee of 0,05%.
As you can see there isn’t any totally free crypto trading bot that offers automated trading. There is only one piece of advice if you’re looking for a trading bot, you should invest some money.
There aren’t the best trading bots on the market. Choosing a crypto trading bot requires you to answer some questions such as what strategy do you want to use, how experienced are you and how long do you want to run your bot and how can you handle volatility and losses.
You can start with Trade Santa crypto bot that is super easy to set up.
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